Clean Run Magazine - December 2006 - 17

amounts permitted for account deposit have risen sharply since its
predecessor, medical savings accounts, and insurance agents Retirement
Plans have wisely suggested GAP protection for those fearful of buying
solely a high-deductible arrangement. SEP Solo 401k Plus the HSA
marketplace has made it relatively seamless to report medical charges to
and withdraw appropriate funds Ideal for Business with variable cash flows
stable cash flows from your account as insurance and investment can be
offered by the same umbrella company. And unused amounts can IRS Return
none Form 5500-EZ be set aside for future needs, years down the road. The
one Requirement if assets > $100K drawback is that the HSA is extremely
date sensitive due to implementation rules. Age 50+ Catchup no yes The
best feature is, however, the tax deduction extended to those
participating in an HSA. For a single participate, up to $2,700 Permitted
Participation owner only owner + spouse can be deposited into the account
during the tax year. The entire $2,700 can be withdrawn for medical or
dental purposes, yet Set-up Deadline tax return filing due date business's
year-end $2,700 is the allowable tax deduction even though the account
balance is $0. A smart option indeed should health conditions Contribution
Deadline tax return filing due date employee - 15 days permit and risk
factors are fully understood. after deferral Facility Ownership employer -
tax The last suggestion centers on an age-old question: whether to return
filing due rent or to buy your facility. I'm certain many would advise
that it date is foolish to throw rent money down the drain. Still, you
must ask yourself and answer honestly before acquiring real property: Can
I handle the debt load? How will I react in a time crisis? Am I really
suited to be a landlord or property baron? Health Savings Accounts I will
not argue whether real estate is a great investment or Tax Year: 2006
whether asset diversification is wise. Instead, I argue that ownership of
real estate, similar to ownership of a small business, Minimum Maximum
Maximum permits deductibility of expenditures not otherwise permitted
Coverage Deductible Out-of-Pocket Contribution as a renter or employee.
With ownership comes responsibility and independence, Single 1,050 5,250
2,700 and, in many income tax situations, an annual loss due to an
accounting feature called depreciation. Depreciation is an Family 2,100
10,500 5,450 expense where the cost of the property, excluding land value,
is deducted evenly over the estimated life of the asset, generally 39 1/2
years for permanent structures. Please bear in mind, however, that these
depreciation deductions Facility Ownership will reduce your cost basis in
the property and accordingly, increase your taxable gain upon sale or
disposition. Regardless, Structure 100,000 a smart option indeed should
finances permit purchase. And please note much of this same discussion
applies to Land 25,000 motor homes. Acquisition Cost 125,000 In Closing
I've offered immediate, near- and long-term suggestions to take a
Depreciation: $100,000 / 39 years = $2,564/yr bite out of your tax bill.
Just as they're no two similar businesses, these suggestions are not
designed to fit every need and Sales Price 250,000 circumstance.
Therefore, please actively engage your financial advisor as questions and
concerns arise. Remember, your dog Less Acquisition Cost 125,000 jumps
through hoops, shouldn't your accountant? D Add Accumulated Depreciation
25,640 Realized Gain 150,640 Geoffrey Goudy is a certified public
accountant, has been in practice for 16 years, and has participated in
canine sporting events since the mid-90s. Go to
CSpotCount.com/CanineSport.asp to learn more about or to direct questions
to Geoffrey and his practice. | December 06 Clean Run 17
http://CSpotCount.com/CanineSport.asp
Clean Run Magazine - December 2006

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